TEST BANK For Auditing & Assurance Services: A Syst
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ematic Approach, 12th Edition by Messier
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Chapters 1 - 21 Complete
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,Chapter 1: An Introductionto Assuranceand Financial Statement Auditing
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Chapter 2: The Financial Statement Auditing Environment
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apter 3: Audit Planning,lTypesofAudit Tests,land Materiality Chapter
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4: Risk Assessment
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Chapter X t X t X t X t X t X t 5: X t X t X t X t X t X t Evidenceand X t X t X t X t X t X t Docume
ntation X t Chapter X t X t 6: X t X t Internal X t X t Controlina X t X t Financial X t X t State
mentlAudit X t Chapter XtXt 7: X t X t Auditing X t X t Internal Xt Xt Controlover XtXt Financial X t
X t Reporting X t Chapter 8: AuditlSampling: An Overviewand Applicationto Testso
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fControls Chapter 9: AuditlSampling: An ApplicationtolSubstantive TestsloflAccount
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Balances Chapter Xt X t X t X t X t 10: X t X t X t X t X t Auditingthe X t X t X t X t Revenue X t
X t X t X t Process X t Chapter X t X t X t X t 11: X t X t X t X t Auditingthe X t X t X t X t Purc
hasing X t X t X t X t Process X t Chapter X t 12: XtXt Auditingthe X t Human X t Resource X
tXt Management XtXt Process X t Chapter 13: Auditingthe Inventory Management Pr
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ocess
Chapter 14: Auditingthe Financing/Investing Process:lPrepaid Expenses, IntangiblelAssets, and Property,
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Plant,landEquipment X
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Chapter 15: Auditingthe Financing/Investing Process:lLong-
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X Term Liabilities, Stockholders’ Equity, and Income Statement Accoun
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ts
Chapter 16: Auditingthe Financing/Investing Process:lCashand Investments
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Chapter X t X t X t 17: X t X t X t Completingthe X t X t X t Audit X t X t X t Engagemen
t X t Chapter X t X t 18: X t X t Reportson X t X t Audited X t X t Financial X t X t Statem
ents X t Chapter 19: Professional Conduct, Independence, and Quality Manag
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ement Chapter 20: Legal Liability
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,Chapter 21: Assurance, Attestation, and Internal Auditing Services
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Auditing& Assurance Services: ASystematic Approach,l12e(Messier) Chapter 1 An Intr
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oductionto Assuranceand Financial Statement Auditing
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1) Auditingfocusesonrules,ltechniques,andcomputationslrequiredtoprepareandanalyzefinan X t X t
X cialinformation.
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ANSWER:l FALSElDifficulty: Xt
1Easy
Topic: TheImportanceforStudying Auditing Le
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arningObjective: 01- X
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01Understandwhystudyingauditingcanbevaluabletoyouwhetherornotlyouplantolbecomeanaudit X
t or, andwhyitlisdifferentfromstudyingaccounting.
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Bloom's: Remember AACSB X t Xt
: Communication
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AICPA: BBLegal;FNDecisionMaking
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2) Decisionmakersdemandreliableinformationthatislprovidedbyaccountants.
ANSWER:l TRUEDifficulty: Xt
1Easy
Topic: The DemandforAuditingand Assurance
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LearningObjective: 01- X
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02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa X t X t
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Bloom's: Understand AACS Xt Xt Xt
B:l CommunicationXt
AICPA: FNDecision Making;BBIndustry
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3) Informationasymmetryseldomoccurs.
ANSWER:l FALSElDifficulty: Xt
2Medium
Topic: The DemandforAuditingand Assurance
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LearningObjective: 01- X
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02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa X t X t
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Bloom's: Apply Xt
AACSB: Communication Xt
AICPA: BBIndustry; FNReporting
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, 4) Conflictslofinterestoftenoccurbetweenlabsenteeownerslandmanagers.
ANSWER:l TRUEDifficulty: Xt
2Medium
Topic: The DemandforAuditingand Assurance
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LearningObjective: 01- X
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02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa X t X t
X ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
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Bloom's: Apply Xt
AACSB: Communication Xt
AICPA: BBIndustry; FNReporting X t Xt
5) Auditingserviceslandattestationserviceslarethelsame.
ANSWER:l FALSElDifficulty: Xt
1Easy
Topic: Auditing, Attest,andAssurance ServicesDefined LearningO
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bjective: 01- Xt
03Understandtherelationshipsamongauditing,lattestation,andassuranceservices. X t X t X t
Bloom's: Understand AACS Xt Xt
B: Communication
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AICPA: BBIndustry; FNReporting X t Xt
6) Auditingisatypeofattestservice. Xt
ANSWER:l TRUEDifficulty: Xt
1Easy
Topic: Auditing, Attest,landAssurance ServicesDefined LearningO
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bjective: 01- Xt
03Understandtherelationshipsamongauditing,lattestation,landassuranceservices.;l01-
X t 04Knowthebasicdefinitionofafinancialstatementaudit.
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Bloom's: Understand AACS Xt Xt Xt
B:l Communication
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AICPA: BBIndustry; FNReporting X t Xt
7) Testingalltransactionsthatloccurredduringtheperiodislcostlprohibitive.
ANSWER:l TRUEDifficulty: Xt
2 Medium Topic: TheAuditP
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rocess
LearningObjective: 01- X
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06Beableltoexplainwhyonmostauditengagementsanauditortestslonlyasampleoftransactionsthat
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X occurred.
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Bloom's: Apply Xt
AACSB: Communication Xt
AICPA: FNDecisionMaking;BBCritical Thinking
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Xt Xt Xt Xt Xt Xt Xt XtXt
ematic Approach, 12th Edition by Messier
Xt Xt Xt Xt Xt X t
Chapters 1 - 21 Complete
Xt Xt Xt Xt
,Chapter 1: An Introductionto Assuranceand Financial Statement Auditing
Xt Xt Xt Xt Xt Xt Xt Xt
Chapter 2: The Financial Statement Auditing Environment
Xt Xt Xt Xt Xt Xt X t Ch
apter 3: Audit Planning,lTypesofAudit Tests,land Materiality Chapter
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4: Risk Assessment
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Chapter X t X t X t X t X t X t 5: X t X t X t X t X t X t Evidenceand X t X t X t X t X t X t Docume
ntation X t Chapter X t X t 6: X t X t Internal X t X t Controlina X t X t Financial X t X t State
mentlAudit X t Chapter XtXt 7: X t X t Auditing X t X t Internal Xt Xt Controlover XtXt Financial X t
X t Reporting X t Chapter 8: AuditlSampling: An Overviewand Applicationto Testso
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fControls Chapter 9: AuditlSampling: An ApplicationtolSubstantive TestsloflAccount
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Balances Chapter Xt X t X t X t X t 10: X t X t X t X t X t Auditingthe X t X t X t X t Revenue X t
X t X t X t Process X t Chapter X t X t X t X t 11: X t X t X t X t Auditingthe X t X t X t X t Purc
hasing X t X t X t X t Process X t Chapter X t 12: XtXt Auditingthe X t Human X t Resource X
tXt Management XtXt Process X t Chapter 13: Auditingthe Inventory Management Pr
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ocess
Chapter 14: Auditingthe Financing/Investing Process:lPrepaid Expenses, IntangiblelAssets, and Property,
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Plant,landEquipment X
t
Chapter 15: Auditingthe Financing/Investing Process:lLong-
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X Term Liabilities, Stockholders’ Equity, and Income Statement Accoun
t Xt Xt Xt Xt Xt Xt Xt
ts
Chapter 16: Auditingthe Financing/Investing Process:lCashand Investments
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Chapter X t X t X t 17: X t X t X t Completingthe X t X t X t Audit X t X t X t Engagemen
t X t Chapter X t X t 18: X t X t Reportson X t X t Audited X t X t Financial X t X t Statem
ents X t Chapter 19: Professional Conduct, Independence, and Quality Manag
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ement Chapter 20: Legal Liability
Xt X
t X
t X
t
,Chapter 21: Assurance, Attestation, and Internal Auditing Services
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Auditing& Assurance Services: ASystematic Approach,l12e(Messier) Chapter 1 An Intr
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oductionto Assuranceand Financial Statement Auditing
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1) Auditingfocusesonrules,ltechniques,andcomputationslrequiredtoprepareandanalyzefinan X t X t
X cialinformation.
t
ANSWER:l FALSElDifficulty: Xt
1Easy
Topic: TheImportanceforStudying Auditing Le
Xt Xt Xt
arningObjective: 01- X
t Xt
01Understandwhystudyingauditingcanbevaluabletoyouwhetherornotlyouplantolbecomeanaudit X
t or, andwhyitlisdifferentfromstudyingaccounting.
X t Xt
Bloom's: Remember AACSB X t Xt
: Communication
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AICPA: BBLegal;FNDecisionMaking
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2) Decisionmakersdemandreliableinformationthatislprovidedbyaccountants.
ANSWER:l TRUEDifficulty: Xt
1Easy
Topic: The DemandforAuditingand Assurance
Xt Xt Xt Xt
LearningObjective: 01- X
t Xt
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa X t X t
X ndauditserviceslthroughananalogytoahouseinspectorandahouseinspectionservice.
t
Bloom's: Understand AACS Xt Xt Xt
B:l CommunicationXt
AICPA: FNDecision Making;BBIndustry
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3) Informationasymmetryseldomoccurs.
ANSWER:l FALSElDifficulty: Xt
2Medium
Topic: The DemandforAuditingand Assurance
Xt Xt Xt Xt
LearningObjective: 01- X
t Xt
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa X t X t
X ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
t
Bloom's: Apply Xt
AACSB: Communication Xt
AICPA: BBIndustry; FNReporting
X t Xt
, 4) Conflictslofinterestoftenoccurbetweenlabsenteeownerslandmanagers.
ANSWER:l TRUEDifficulty: Xt
2Medium
Topic: The DemandforAuditingand Assurance
Xt Xt Xt Xt
LearningObjective: 01- X
t Xt
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa X t X t
X ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
t
Bloom's: Apply Xt
AACSB: Communication Xt
AICPA: BBIndustry; FNReporting X t Xt
5) Auditingserviceslandattestationserviceslarethelsame.
ANSWER:l FALSElDifficulty: Xt
1Easy
Topic: Auditing, Attest,andAssurance ServicesDefined LearningO
Xt Xt Xt Xt
bjective: 01- Xt
03Understandtherelationshipsamongauditing,lattestation,andassuranceservices. X t X t X t
Bloom's: Understand AACS Xt Xt
B: Communication
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AICPA: BBIndustry; FNReporting X t Xt
6) Auditingisatypeofattestservice. Xt
ANSWER:l TRUEDifficulty: Xt
1Easy
Topic: Auditing, Attest,landAssurance ServicesDefined LearningO
Xt Xt Xt Xt
bjective: 01- Xt
03Understandtherelationshipsamongauditing,lattestation,landassuranceservices.;l01-
X t 04Knowthebasicdefinitionofafinancialstatementaudit.
X t X t
Bloom's: Understand AACS Xt Xt Xt
B:l Communication
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AICPA: BBIndustry; FNReporting X t Xt
7) Testingalltransactionsthatloccurredduringtheperiodislcostlprohibitive.
ANSWER:l TRUEDifficulty: Xt
2 Medium Topic: TheAuditP
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rocess
LearningObjective: 01- X
t Xt
06Beableltoexplainwhyonmostauditengagementsanauditortestslonlyasampleoftransactionsthat
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X occurred.
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Bloom's: Apply Xt
AACSB: Communication Xt
AICPA: FNDecisionMaking;BBCritical Thinking
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